Based on information from the Chase Sapphire case

(1) For the 100,000 bonus point offer, do the margin analysis for each customer type (transactors, revolvers, and churners). The table below provides complete information (assumptions and facts) for you to do the analysis. Fill in the cell with a ? with a number based on your calculation.

Year 1 Transactors Revolvers Churners

Assumptions

Annual spend $18,000 $18,000 $4,000

Percent of balance on revolve 0% 50% 0%

Case Facts

Interchange fee on spend (p. 13 of the case) 1.5% 1.5% 1.5%

Interest rate on revolve balance (midpoint of range

given on p. 18)

20.5% 20.5% 20.5%

Customer Revenues

Annual card fee (p. 1) $450 $450 $450

Interchange fee revenue on spend ? ? ?

Interest revenue on unpaid balance ? ? ?

Acquisition Expenses

Card acquisition expense (p. 2) $350 $350 $350

Bonus point expense (@100k) (1.5% x 100k) (p. 8) $1,500 $1,500 $1,500

Margin ? ? ?